POST UTME AL-HIKMAH UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's supply curve is given by P = 50 + 2Q. If the firm's marginal \cost (MC) is ₦100, calculate the price elasticity of supply.
A. 0.5
B. 1
C. 2
D. 5
Question 2
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is ₦20, calculate the firm's current elasticity of demand.
A. 0.5
B. 1
C. 2
D. 3
Question 3
A firm's total revenue (TR) is given by TR = 100Q - 2Q^2. If the firm's total \cost (TC) is ₦500 + ₦50Q, calculate the profit-maximizing output level.
A. Q = 10
B. Q = 20
C. Q = 30
D. Q = 40
Question 4
A government is considering a tax on a particular good. The supply curve of the good is given by Q = 100 + 2P, and the demand curve is given by Q = 150 - 3P. If the government imposes a tax of ₦10 on the good, calculate the new equilibrium price and quantity.
A. ₦25, Q = 125
B. ₦30, Q = 100
C. ₦35, Q = 75
D. ₦40, Q = 50
Question 5
A consumer's indifference curve is represented by the equation u(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. x = 60, y = 40
B. x = 40, y = 60
C. x = 50, y = 50
D. x = 70, y = 30
Question 6
A firm is considering two investment projects. Project A has a 10% chance of success and will yield a profit of 100 million if it succeeds. Project B has a 20% chance of success and will yield a profit of 50 million if it succeeds. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects
D. Neither project
Question 7
Consider a closed economy with a GDP of ₦1,000,000 and a GNP of ₦1,100,000. What is the likely outcome for the economy's net factor income from abroad?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 8
A government is considering a budget that allocates ₦100 billion to education and ₦50 billion to healthcare. If the government's total budget is ₦200 billion, calculate the government's budget deficit.
A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion
Question 9
The government's budget constraint is given by?
A. G = T
B. G = T + I
C. G = T - I
D. G = T + I + X
Question 10
A country has a fiscal policy of increa\sing government sp\ending by 10% per annum. If the initial government sp\ending is 50 billion, what is the government sp\ending after 5 years?
A. 55 billion
B. 60 billion
C. 65 billion
D. 70 billion
Question 11
A firm's industrial sector is characterized by a production function Q = 2L^0.5 + 3K^0.5. If the firm's labor and capital inputs are 4 and 9 respectively, what is the firm's industrial output?
A. 20
B. 30
C. 40
D. 50
Question 12
A country has a monetary policy of increa\sing the money supply by 5% per annum. If the initial money supply is 100 billion, what is the money supply after 5 years?
A. 125 billion
B. 130 billion
C. 135 billion
D. 140 billion
Question 13
The concept of diminishing marginal utility is related to the law of?
A. Diminishing returns to scale
B. Increa\sing opportunity \cost
C. Diminishing marginal utility
D. Law of supply
Question 14
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5. If the firm has 100 units of labor and 50 units of capital, what is the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 3
Question 15
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor (L) is ₦50 per unit and the price of capital (K) is ₦100 per unit, calculate the \cost-minimizing input combination when the firm produces 100 units of output.
A. L = 10, K = 20
B. L = 20, K = 10
C. L = 15, K = 15
D. L = 20, K = 20

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: